Cambridge UK, 17th January 2005 - DanioLabs, the Cambridge based biotechnology company that discovers and develops new therapeutics through high content biological systems screening, today announced the closing of its first institutional financing round, which was led by Cambridge Gateway Fund. The total value of this round was £3.2M with Merifin and NVM as the other institutional investors, and additional funds from existing and new angel investors.

The completion of this funding round marks the beginning of the next growth stage of the Company. The funds will be invested in developing a greater platform of sophisticated disease models to expand available screening services on an international basis and extend existing corporate partnerships globally.

The financing tops a highly successful year for the company, which has become an international leader in high content biological systems screening and generated an increasing number of collaborations with major pharmaceutical companies. Partner companies are using DanioLabs’ technologies to support their internal drug discovery efforts in a broad range of disease areas, and in quantifying key safety pharmacology parameters. DanioLabs has also identified new indications for known therapeutics in partnership with pharmaceutical companies.

DanioLabs has focussed internal discovery programmes in major underserved disease areas such as osteoporosis and epilepsy. Development partners will be sought at appropriate times for each programme.

Derek Jones, DanioLabs’ COO, commented on the fund raising: “We are delighted to have successfully closed this funding round with a syndicate of experienced investors. Their confidence validates the applicability of the Company’s science platform in the current requirements of the pharmaceutical industry to accelerate drug development timelines. ”

Dr Paul Goldsmith, the Company’s CSO, added: “Over the last two years our scientific results have shown that the use of our systematic upfront drug screening in biological models is significantly commercially attractive to big pharma because we can generate accurate efficacy and safety data to support their drug development efforts.”

DanioLabs Limited www.daniolabs.com

DanioLabs (Cambridge, UK), is a drug discovery company that discovers and develops novel therapeutics primarily in neurological and ophthalmological diseases. In addition to identifying new pharmaceuticals for our own internal development, the Company also works with other companies applying the technologies to help them discover and develop their compounds.

DanioLabs develops validated disease models, and screen for phenotypic rescue from the disease state. This approach is used to identify novel uses for known drug compounds – drug reprofiling, or to validate and prioritize New Chemical Entities (NCEs) that have shown activity in in-vitro assays, and can be also be used in safety pharmacology assessment.

Cambridge Gateway Fund www.cambridgegateway.com

The Cambridge Gateway Fund invests predominantly in companies with global reach that are connected with the eastern region of the UK and which are exploiting innovative core technology in Information and Communication Technologies and Life Sciences.

The Fund is advised by NW Brown Capital Partners Limited, which is authorised by the FSA; and associated with the NW Brown Group, which was founded in Cambridge in 1974. The group employs 100 people and offers a comprehensive range of financial services to private and corporate clients.